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Coho ESG US Large Cap EquityPerformance data as of 30/09/2020, gross of fees
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Agenda1. About Coho Partners
2. Portfolio Construction
3. Portfolio Snapshot
4. Coho’s commitment to ESG• Portfolio’s Impact examples
5. Performance & Characteristics Coho ESG US Large Cap Equity
6. Performance & Characteristics Coho Relative Value
7. About Candoris
8. Appendix
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Section One:
About Coho Partners
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About Coho Partners, Ltd.Providing downside protection and upside participation
Coho Partners• Employee-owned boutique founded in 1999 by Peter Thompson
• Focusing on one investment approach, Large Cap Equity
• Sin free strategy track record since 2011, later named ESG
• Currently manages over $ 7.8 bn in AUM*• US$ 5.2 bn in discretionary assets• US$ 2.6 bn in model-based assets
• Client asset mix is 92% institutional/intermediary, 8% private wealth
• Based in Berwyn, near Philadelphia, PA
• Flagship strategy has performance track record since 2000
• Continue to reinvest in personnel and resources• Additional resources added to Investment Operations Team; engaged in
recruiting for two Investment Team hires
• Succession planning in place for a pending retirement at the end of 2020
Candoris & Coho
• Partnership dates to 2013
• Committed to growth in the Nordics and throughout Europe
• Provides capacity to grow in strategy, without jeopardizing performance
* As of 30/09/2020
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Organizational StructureCoho Partners
Glenn Dever*Partner,
President
Peter Thompson*Founder,
CIO
Business Operations & Compliance
Private ClientsRick Wayne, CFA*Eric Hildenbrand, CFARoseann Dittmar
Partner, PM & Director StrategyPartner, Portfolio ManagerPartner, Client Relations
Client RelationsJoe Ciavarelli, CFAJena DietrichTim McAvoyWayne LeSage, CFALisa MarlinLisa MoneymakerJohn Musser John Finnegan
Client & Consultant RelationsPartner, MarketingClient & Consultant RelationsPartner, Client RelationsPartner, Client RelationsPartner, Client RelationsPartner, Client & Consultant RelationsPartner, Client Relations
Kyle Bubeck**Matt SzokeBrian BurkePat HetrickBrian GibsonJoanne PowellDavid ManginiTerry Davis Lisa GentryWendy WeeHans SpechtJennifer Griffith
Chief Compliance OfficerInformation TechnologyInvestment OperationsOffice ManagerPartner, Business OperationsPartner, Investment OperationsInvestment OperationsPartner, Office CoordinationPartner, CompliancePerformance AnalystFinancePartner, Human resources
* Member, Coho Board of Directors** Coho outsources its CCO functionNote: Coho outsources IT services to iCorps Technologies, Inc
Investment TeamBrian Kramp, CFA*Partner, Portfolio Manager & Director Research
Chris Leonard, CFAPartner, Portfolio Manager & Investment Analyst
Ruairi O’Neill, CFAPartner, Portfolio Manager & Investment Analyst
Nimrit Kang, CFAPartner, Portfolio Manager & Investment Analyst
James KlingerPartner,Trader
Ward Kruse, CFAPortfolio Manager & Investment Analyst
Mengchen MaESG Analyst
Andrew Hanna, CFAInvestment Analyst
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Coho ESG CommitmentProprietary ESG research, ESG Reporting on portfolio level, 5 Globes Morningstar UN PRI signatory, Norges Bank exclusion list, Coho cares!
Source: Morningstar Data quoted is past gross of fee performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.
Coho Relative
Value ESG
iShares ESG MSCI USA ETF**
iShares Core S&P 500 ETF
Equity Holdings 27 347 507
Environmental FactorsEnergy Intensity per Sales (mw/1m USD sales)*
79.0 341.5 505.5
Greenhouse Gas Intensity per Sales (mt/1m USD sales)
42.3 76.9 143.1
Water Intensity per Sales (cbm/1m USD sales)*
0.74K 20.10K 17.69K
Social & Governance Factors
Bloomberg ESG Disclosure Score (%) 42% 43% 43%
Companies with 20% or More Women on Boards
89% 80% 80%
Companies with 80% or More Board Independence
93% 84% 82%
Coho Proprietary ESG ScoresA company needs to meet certain minimum scores on ESG score, trend and disclosure in
order to make it into the portfolio. Next to that a company has to meet the required Coho criteria on Stability, Growth, Profitability, Quality and Shareholder Focus
As of 9.30.20 2017 2018 2019 3Q 2020
Coho Scores 1st Quartile 1st Quartile 1st Quartile 1st Quartile
Trend Neutral Positive Positive Positive
Disclosure 1st Quartile 1st Quartile 1st Quartile 1st Quartile
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Coho’s Investment PhilosophyWhere protection and participation meet
Coho firmly believes that the best method to create and sustain long-term wealth is to:
• Protect principal in down markets
• Generate competitive returns in all but the most speculative of up markets
• Incorporate proprietary ESG analysis as an important aspect of a fundamental research driven process
To accomplish this goal, Coho:
• Focuses on an investable universe that consists of companies explicitly chosen because of their long history of stable business models, solid growth, excellent management teams, and shareholder/ ESG friendly practices
• Selects stocks based on high predictability and low variability of revenues, earnings and cash flows
• Manages a concentrated, benchmark agnostic portfolio - generally 25-35 names
Dividend discount model of securities in the portfolio shows at least 600 basis points of annualized expected excess return, typically 10% - 12% expected IRR
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2%
4%
6%
8%
10%
10% 12% 14% 16% 18%
Coho’s Investment PhilosophyProviding downside protection and upside participation
Up/down market capture since inception Risk/reward comparison since inception
Data quoted is past performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.Data is as of 30/09/2020 and of the Coho Relative Value Strategy
Coho firmly believes that the best method to create and sustain long-term wealth is to:• Protect principal in down markets
• Generate competitive returns in all but the most speculative of up markets
Long term track record of composite Coho Relative Value since 2000 (Non ESG)
Coho Relative Value
Russell 1000 Value
S&P 500
86,8%
73,3%
0%
20%
40%
60%
80%
100%
Up Market Capture Down Market Capture
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Coho’s Repeatable Pattern of ReturnsParticipate in mature bull markets, benefit from low downside capture
Participate in mature bull markets, benefit from low downside captureThe table below is based on the Coho Relative Value track record, to show how the strategy performed during bear markets.
Long term track record of composite Coho Relative Value since 2000 (Non ESG)*Coho performance divided by S&P 500 and/or S&P 500 Value performance for each relevant time period. Coho Relative Value Equity composite, gross of fees, as of 30/09/2020 Past performance is not indicative of future results. Calculations for capture ratios are based off of actual returns which extend to several decimal places. Differences may occur due to rounding. Sources: Advent/Axys and Coho Partners. Information presented is derived using currently available data from independent research resources that are believed to be accurate.
Market Cycle Time Period Duration Coho Relative Value Equity S&P 500 Russell 1000
Value VS. the S&P 500 VS. the Russell 1000 Value
Bear 4Q00 - 3Q02 8 qtrs -8% -42% -24% 20% 35%
Early Bull 4Q02 - 4Q03 5 qtrs 34% 40% 42% 85% 80%
Mature Bull 1Q04 - 3Q07 15 qtrs 49% 47% 62% 105% 80%
Bear 4Q07 - 1Q09 6 qtrs -29% -46% -50% 62% 57%
Early Bull 2Q09 - 3Q09 2 qtrs 24% 34% 38% 70% 63%
Mature Bull 4Q09 - 1Q11 6 qtrs 31% 29% 28% 105% 109%
Correction 2Q11 - 3Q11 2 qtrs -7% -14% -17% 53% 44%
Mature Bull 4Q11 – 2Q16 19 qtrs 109% 106% 104% 104% 105%
Late Bull 3Q16 – 3Q18 9 qtrs 32% 45% 30% 71% 105%
Correction 4Q18 – 4Q18 1 qtr -10% -14% -12% 74% 85%
Late Bull 1Q19 – 4Q19 4 qtrs 24% 31% 27% 77% 92%
Bear 1Q20 – 1Q20 1 qtr -18% -20% -27% 93% 68%
Late Bull 2Q20 – 3Q20 2 qtr 22% 31% 21% 70% 106%
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Section Two:
Portfolio Construction
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Building Coho’s PortfolioKey elements of the investment process
Execute thorough research on ESG universe and its drivers
Narrow focus to a highly selective, advantaged universe of companies that have generally shown long-term stability and growth in most economic environments
Construct Dividend Discount Models (DDMs) for each company using realistic yet conservative assumptions
AN ADVANTAGED UNIVERSE: COHO 250
PORTFOLIO CONSTRUCTION
IN-DEPTH FUNDAMENTAL RESEARCH DETERMINES ATTRACTIVENESS
The portfolio contains 25 to 35 securities
Long-term investors with low annual portfolio turnover (15% to 20%)
Employ an exclusionary overlay that removes tobacco, firearms, alcohol, defense and mining
Integrated ESG qualitative and quantitative framework
SUSTAINABLE LEADERS: COHO ESG 200 UNIVERSE
Buy/sell decisions driven by risk/return profile
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An advantaged universe“Coho 250”
Coho quantitively and qualitatively screens U.S.-listed companies for:
• Stability - low variability in earnings, revenues, and cash flow growth
• Growth - absolute and relative growth in revenues, earnings, and dividends
• Profitability – low capital intensiveness and excess free cash flow generation
• Quality - balance sheet strength, management integrity, depth and execution
• Shareholder Focus - transparency of financials and operational strategy, capital allocation, dividends, buybacks, and bolt-on acquisitions
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Sustainable Leaders“Coho ESG universe”
Coho uses proprietary quantitative and qualitative processes to develop a holistic sustainability profile for each company
Companies that demonstrate the Coho asymmetric pattern of returns
Initial screening excludes alcohol, tobacco, firearms, gambling, defense, and mining industries
Focus on multi-year trends on Environmental, Social, and Governance factors
Benchmark the sustainability journey for each company
Active dialogue with company management
ESG proxy voting
Identify material and financially relevant ESG factors for each business model
Controversy evaluation discipline
Common fundamental drivers across securities:
* Governance
* Human capital
* Environmental stewardship
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Included in the Coho ESG 200Becton, Dickinson and Company (BDX)
Source: Securities Research Company
Source: Coho Partners
Becton Dickinson and Company (BDX): Meets the Coho asymmetric pattern of return and ESG criterion
Price: Lower-than-market beta, more gradual moves, reflective of earnings growth
Earnings: Consistent earnings growth across various economic cycles
Dividends: Consistent, steady dividend growth in most economic environments
Coho Proprietary ESG ScoresQuartile Rankings vs. S&P 500 Index
As of 9.30.20 2017 2018 2019 3Q 2020
Coho Scores 1st Quartile 1st Quartile 1st Quartile 1st Quartile
Trend Neutral Positive Positive Positive
Disclosure 1st Quartile 1st Quartile 1st Quartile 1st Quartile
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Coho ESG Framework: Becton, DickinsonInvestment process
Sources: Coho Partners and Sustainability Accounting Standards Board (SASB)
ESG Considerations Relevant Metrics Examples Fundamental Value Drivers
Innovation & access % of revenue from new product introductions
Integrated infusion pumps & catheters reduce medication errors
Affordable smart pen needles & patch pumps for diabetes management
Mfg. & supply chain managementSustainable materials; responsible supply chain
Introduced new IV sets in Europe & Japan made from non-PVC materials
Energy & resource managementRenewable mix, GHG emissions, & water usage
45% of total energy from renewables with goal of 50%Reduce water consumption by 35%
Employee recruitment, development, and retention
Employee turnover, diversity, and career opportunities
7.2% turnover rate50% of workforce women, 18% at top two levels and 23% at executive ranks
Independence & strength/quality of board of directors Board diversity
Board with 30% women & 20% minoritiesBroad experience across the public & private health-care continuum
Executive team incentives & organizational priorities
Metrics, alignment with stock return & sustainability goals
Long-term equity is the largest component of executive compensation
Market share, revenue growth
Operating & gross margins
Shareholder returns
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Excluded from the Coho ESG 200JPMorgan Chase & Co (JPM)
Source: Securities Research Company
JPMorgan Chase & Co (JPM): Scores well on ESG metrics but does not meet the Coho asymmetric pattern of return
Source: Coho Partners
Dividends: On-again/off-again dividend policies –unreliable payouts
Price: Higher-than-market beta, potentially big rewards, big risks
Earnings: Highly volatile / economically sensitive earnings with erratic growth
Coho Proprietary ESG ScoresQuartile Rankings vs. S&P 500 Index
As of 6.30.20 2017 2018 2019 3Q 2020
Coho Scores 2nd Quartile 2nd Quartile 3rd Quartile 2nd Quartile
Trend Positive Neutral Neutral Neutral
Disclosure 1st Quartile 1st Quartile 1st Quartile 1st Quartile
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In-depth fundamental research determines sustainability profile
• Limited disclosure on ESG metrics led to lower third-party ratings
• However, investing in employees is a key pillar of company’s strategy and competitive advantage
• Strong commitment to developing and promoting employees to management positions
• Ranked 5th in Training Magazine’s, “Top 125 in 2018”*
• Reinvested tax savings in form of higher salaries for store managers, eight weeks of paid maternity leave, and adoption assistance benefits
▪ In 2019, Dollar General published its first Corporate Responsibility Report, “Serving Others”
▪ Launched new initiative, “DG-Fresh” to increase access to fresh and frozen food in >12K stores by end of 2020
• ESG metrics did not reflect the change in culture and company’s strategic shift toward a more branded product portfolio
• Highlights of our engagement with the company:
• Strong commitment to integrating sustainability attributes in product design
◦ Recently pledged to move toward 100% of its current packaging to be renewable, recyclable, or compostable by 2025, saving 33M pounds of plastic packaging
◦ Healthy Choice Power Bowls’ shift to plant-based bowls has saved 2.1M pounds of plastic since 2017
◦ Agreed to evaluate use of Total Shareholder Return (TSR) as a metric for long-term compensation
*Source: Training Magazine, "Training Magazine Ranks 2018 Training Top 125 Organizations," February 13, 2018. The Training Top 125 ranks companies based on employee training and development in the last year. This ranking is not indicative of futureperformance.
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In-depth Fundamental Research Determines AttractivenessInvestment process
5-Year Dividend Discount Model (DDM):▪ Utilizes long-term,
historically-consistent, normalized assumptions for revenues, margins, capital allocation and relative valuations
Bottom-up due diligence:▪ Meetings with company
management
▪ Analysis of regulatory filings
▪ Creation of a position paper, or quality-of-execution ‘report card’
▪ Thorough assessment of ESG value drivers
Coho ESG Universe
ESGCandidates
For Purchase
Fundamental & ESG
Analysis
ValuationAnalysis
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Coho’s Buy and Sell DisciplinesInvestment process
Sell▪ Declining ESG metrics or major, new
controversy
▪ Stock achieves valuation - DDM becomes unattractive
▪ Position paper metrics are violated
▪ New idea displaces the current holding
Position paper example – XYZ CorporationBuy
▪ Demonstrated commitment to ESG principles and practice
▪ DDM produces high single-digit/low double-digit IRR
▪ Position paper written to identify key ESG, financial and operating objectives
▪ Collaborative mix of individual accountability and team feedback
Example position paper is for illustrative purposes only. Actual internal position papers may differ.
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Coho’s Buy and Sell DisciplinesInvestment process
Example position paper is for illustrative purposes only. Actual internal position papers may differ.
The same tools inform both our buy and sell disciplines
Dividend Discount
Model
Position Paper
Coho ESG
Framework
Our valuation discipline
▪ Bottom-up fundamental research drives the inputs
▪ Buy when DDM produces high single-digit/low double-digit IRR
▪ Sell when IRR contracts to mid- to low-singles
Our execution discipline
▪ Identifies key financial and operational metrics and is tracked continuously
▪ Buy when execution against these metrics is strong
▪ Sell when execution breaks down regardless of DDM-derived IRR (avoid value traps)
Our sustainability discipline
▪ Proprietary quantitative and qualitative assessment of material ESG metrics and trends
▪ Controversy assessment tool for objective evaluation of risk
▪ Buy when score is strong and/or trend is positive
▪ Sell upon deterioration of commitment toward sustainability
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Portfolio ConstructionPortfolio guidelines
Demand-Defensive Companies
• Largely impervious to the level of economic activity
• Includes Consumer Staples, Health Care, Integrated Energy and Utilities
• Most predictable growth in earnings, dividends, and cash flow
• Significantly outperform in down markets and compete in all but the strongest up markets
Economically Sensitive Companies
• Stable business models with modest cyclicality
• Communication Services, Consumer Discretionary, Financial Services, Industrials, Information Technology, Non-integrated Energy, and Real Estate
• Provide competitive upside performance in rising market
▪
25 to 35 securities
▪ Demand-Defensive companies:
40% to 70%
▪ Economically-Sensitive companies:
30% to 60%
▪ Security weight range: 2% to 6%
▪ Cash tends to be less than 5%
Portfolio guidelines
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Coho’s Primary Objective is to Protect PrincipalInvestment process
Coho ESG 200
Valuation discipline
Execution discipline
Coho is highly focused on risk control:
Universe discipline
Sustainability discipline
Valuationdiscipline
Execution discipline
Construction discipline
Coho 250: explicitly chosen business models
best able to provide downside protection
and upside participation
ESG Framework: assessment of material ESG metrics and trends
Controversy assessment
Dividend Discount Model: conservative assumptions
and reasonable market expectations
Position Paper: quality of management
execution
Diversified Portfolio:preference for
demand-defensive companies
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Building up Coho’s Portfolio, SummarizedPortfolio construction
Step Three:
Buy & Sell Disciplines
Step Four:
The PortfolioStep One:
The Coho 250
▪ 25 – 35 stocks in the portfolio
▪ 40% - 70% in Demand Defensive companies
▪ 30% - 60% in Economically Sensitive companies
▪ Security weighting range of 2% - 6% of portfolio
▪ Cash tends to be less than 5%
• Stability – low variability in earnings, revenues, and cash flow growth
• Growth – absolute and relative growth in revenues, earnings, and dividends
• Profitability – low capital intensiveness and excess free cash flow generation
• Quality – balance sheet strength, management integrity, depth, and execution
• Shareholder focus – transparency of financials and operational strategy, capital allocation acumen – dividends, buybacks, and bolt-on acquisitions
Buy:
▪ DDM produces high single-digit/low double-digit IRR
▪ Position paper written to identify key ESG, financial, and operating objectives
▪ Collaborative mix of individual accountability and team feedback
▪ Demonstrated commitment to ESG principles and practice
Sell:
▪ Stock achieves valuation - DDM becomes unattractive
▪ Position paper metrics are violated
▪ New idea displaces the current holding
▪ Declining ESG metrics or major, new controversy
Step Two:
The Coho ESG universe• Initial screening excluding
alcohol, tobacco, firearms, gambling, defense and mining industries
• Focus on multi-year trends on Environmental, Social and Governance factors
• Benchmark the sustainability journey for each company
• Active dialogue with company management
• ESG proxy voting
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Section Three:
Portfolio Snapshot
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Portfolio ConstructionAverage portfolio weights
These typical relative weightings impact the effect of sector allocation and stock selection on the portfolio:
CyclicalityCoho ESG U.S. LC
Equity S&P 500 Russell 1000 ValueDemand Defensive 57% 24% 28%
Economically Sensitive 43% 76% 72%
Quality
A- and above 63% 42% 39%
B+ and below 37% 58% 61%
Volatility
Lowest 2 beta quintiles 60% 40% 40%
Highest 3 beta quintiles 40% 60% 60%
Source: FactSet Portfolio Analysis, Standard and Poor’sData as of 30/09/2020
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Holdings-Based CharacteristicsSector Weights
Source: Advent/Axys, FactSet, Standard & Poor’s and Coho Partners.As of 30/09/2020Information presented is derived using currently available data from independent research resources that are believed to be accurate.
SectorCoho ESG U.S. LC
Equity S&P 500Russell 1000
Value
Dem
and
D
efen
sive Health Care 28.3% 14.3% 14.3%
Consumer Staples 25.4% 7.0% 8.4%
Utilities 0.0% 3.0% 6.0%
Eco
no
mic
ally
Se
nsi
tive
Consumer Discretionary 13.3% 11.6% 7.6%
Financial Services 12.4% 9.7% 18.1%
Information Technology 9.2% 28.2% 9.7%
Industrials 7.8% 8.3% 13.1%
Communication Services 0.0% 10.8% 9.6%
Energy 0.0% 2.1% 4.0%
Materials 0.0% 2.6% 4.7%
Real Estate 0.0% 2.6% 4.6%
Cash and Equivalents 3.5% 0.0% 0.0%
Total 100.0% 100.0% 100.0%
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Holdings-Based CharacteristicsHoldings and returns-based characteristics
Source: Advent/Axys, FactSet, Standard & Poor’s.As of 30/09/2020Information presented is derived using currently available data from independent research resources that are believed to be accurate.
Coho ESG U.S. LC equity S&P 500 Russell 1000 Value
Equity Holdings 27 505 850
3 Year Annualized Turnover 13.1% N/A N/A
Dividend Yield 2.2% 1.7% 2.4%
Dividend Growth (last 5 yrs) 10.7% 11.7% 10.1%
EPS Growth (last 5 yrs) 8.6% 10.0% -1.3%
EPS Growth (next 5 yrs) 8.0% 12.1% 6.9%
P/E (trailing 4 quarters) 16.9x 22.9x 17.1x
P/E (forward 4 quarters) 17.1x 22.5x 17.3x
Price/Book 3.4x 3.6x 2.0x
LT Debt/Capital 49.3% 43.5% 43.1%
Net Debt/EBITDA 2.0 2.3 2.7
5-Year Avg ROE 26.2% 23.0% 17.2%
Weighted Avg Market Cap $98.5 B $453.0 B $122.1 B
Median Market Cap $54.0 B $23.1 B $9.3 B
Beta (last 10 yrs) 0.86 1.00 1.00
Active Share N/A 91.9% 92.6%
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ESG Characteristics
As of 30/09/2020; Source: Bloomberg. *Because of lack of full data availability for each time period and significant lag on individual company basis, this methodology utilizes the last reported data for each company which may not aggregate to a single year or time period across the universe. Water Intensity Data is available for 50% of the constituents.**Tracks MSCI USA Extended ESG Focus IndexPlease see Appendix for ESG metric definitions. Information presented is derived using currently available data from independent research resources that are believed to be accurate.
Coho Relative Value ESG
iShares ESG MSCI USA ETF**
iShares Core S&P 500 ETF
Equity Holdings 27 347 507
Environmental Factors Energy Intensity per Sales (mw/1m USD sales)* 79.0 341.5 505.5
Greenhouse Gas Intensity per Sales (mt/1m USD sales) 42.3 76.9 143.1
Water Intensity per Sales (cbm/1m USD sales)* 0.74K 20.10K 17.69K
Social & Governance Factors Bloomberg ESG Disclosure Score (%) 42% 43% 43%
Companies with 20% or More Women on Boards 89% 80% 80%
Companies with 80% or More Board Independence 93% 84% 82%
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Portfolio SnapshotRecognized by Forbes* as four of the nation’s top 25 employers for their response to COVID-19 pandemic
Essential Retailers Employees CommunityInvested $275M in special bonuses and increased pay rate for hourly associates; Added 14 days of emergency paid leave for all employees and up to 4 weeks of emergency paid leave for employees in the high-risk category; Rewarded front-line managers with two extra weeks of paid vacation
Hired more than 100K associates across the U.S. for short-term opportunities; Committed $75M to support COVID-19 relief efforts and small business; Donated all available respirators to the country's largest health-care distribution organizations
Invested $150M in its Thank You Pay program for frontline associates; $15M contribution to Helping Hands fund for associates in need;Offered free COVID-19 testing and paid sick time
Hired more than 100,000 new associates; Waived grocery pickup and prescription delivery fees;Partnered with the government to expand testing and help test more than 82K patients in 15 states; Offered free check cashing for stimulus, unemployment, and social security checks and cashed $244M in total
Rewarded onsite employees with a special bonus ($150-$500); Provided 15 days paid sick leave for part-time workers
Established over 1000 testing sites across the nation with capacity for ~1.5M tests per month; Hired 50K employees. Offered free delivery of prescriptions and everyday essentials; Waived copays for COVID-19-related diagnostic testing for Aetna members
Offered special product discounts for employees, health-care workers, and first responders; Invested $60M in employee appreciation bonuses to frontline workers; Expanded paid leave and telehealth service access
Hired over 50K new employees; Donated $2M to "Save the Children" to ensure children will have nutritious food during school closures; Participated in "United for America" to set up food banks
* “The Forbes Corporate Responders: New Ranking of Nation’s Top Employers’ Responses to Pandemic.”, www.Forbes.com, May 26, 2020
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Portfolio SnapshotHelping in the fight against the pandemic
Health Care Direct response to fighting the COVID-19 virus
Committed $1 billion in partnership with U.S. Department of Health and Human Services to accelerate vaccine development available for emergency use by early 2021; One billion vaccines will be made available on a non-profit basis; $300M in donations for health-care workers
Rolled out the fastest available molecular point-of-care test for detection of COVID-19 using the ID NOW system; Through June 2020, shipped 4.5M ID NOW tests, 4M molecular tests, and 12.1M antibody tests across the five test platforms
Led the initial phase of testing; Performed 4.65 million COVID-19 tests through May 2020 across 12 laboratories with continued reduction in turnaround times; Collaborated with local organizations to increase access to testing in underserved communities in St. Louis and Atlanta; Received FDA approval for a self-collection kit for COVID-19; Launched new return-to-work services for large-scale workforce COVID-19 testing
Doubled production of N95 respirators to 1.1 billion/year since January 2020, and now ramping manufacturing capacity for 2 billion/year output over next 12 months; Pledge to fight price gouging and counterfeit products
Developed and received approval for at-home COVID-19 test kit; Provides free access to mental and emotional health products to all Americans regardless of coverage; Head of Optum division provided leave through year-end 2020 to lead the World Health Organization’s vaccine discovery effort
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Section Four:
Coho’s Commitment to ESG
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Portfolio’s Impact examplesPortfolio snapshot
Dollar General• Recommended the company formalize its ESG effort, increase
disclosure, and publish a corporate sustainability report. The company was actively engaged and sought our input on which standards to consider.
• ESG initiatives will receive more focus going forward. For example, an equal pay survey was conducted to look at gender-based wage gaps. Changes are being implemented as a result of the findings.
Grainger• Participated in a materiality assessment to determine ways in which
Grainger could improve its ESG focus. The company already ranks very high on sustainability issues, and we strongly support the proactive effort to improve and incorporate major shareholders’ input into its ESG policies and initiatives
• Encouraged separation of Chairperson/CEO role.
Illinois Toolworks• Discussed the reasons for lack of corporate-wide environmental targets
and encouraged the company to adopt clear and time-bound environmental goals.
• Reviewed the skillset of the board members and encouraged addition of new members with more diverse industry experience and backgrounds.
• Requested addition of Environmental and Social metrics as part of the executive compensation package.
Examples of companies Coho has actively engaged with:Omnicom• Conveyed that the company’s Corporate Responsibility Report
lacks sufficient quantitative metrics and needs to include more tangible targets and goals. Aggregation of data is difficult given 1,500 separate ad agencies under the Omnicom umbrella, but the general counsel indicated this is something upon which they will focus.
• Sought increased structure around data privacy, particularly in light of the implementation of GDPR.
• Encouraged the addition of board members with IT experience given the changing landscape of ad delivery.
Proctor & Gamble• Dissented with Proctor & Gamble’s current approach to
compensation targets. The goals are not sufficiently challenging and management can be rewarded for delivering below industry performance. We believe this feedback is likely to result in an adjustment to the incentive plan going forward.
• Sought to understand the company’s lag relative to its goal to reduce packaging by 20%. A move to smaller pack sizes is the issue, but we view this more as a way to get price/margin and less due to customer demand. We argued for an increased focus on innovation to drive price and reduce waste moving forward.
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Portfolio’s Impact examplesPortfolio snapshot
Examples where Coho has actively proxy voted:
Coho votes all their proxies using their customized ESG proxy voting policy and make decisions they believe have the potential to enhance shareholder returns and benefit stakeholders
• Evidence of a link between executive pay and performance; Review of financial and non-financial targets such as sustainability metrics
• Limit non-CEOs to three public boards and CEOs to serve on only one outside board
Our 2019 proxy voting record
✓ Voted against 51 directors who did not meet Coho’s policy requirements on board commitments
✓ Supported 49% of shareholder proposals compared to 30% for the S&P 500 Index . Coho’s vote against management proposals was 11% compared to 4% for the S&P 500 Index
2019 Votes FOR Shareholder Proposals
49%
30%
Shareholder
Coho S&P 500 Index
2019 Votes AGAINSTManagement Proposals
11%
4%
Management
Coho S&P 500 Index
FOR INVESTMENT PROFESSIONAL USE ONLY 35
Coho ESG Overview5 Globe Morningstar rating, proprietary ESG scores, UN PRI, Norges Bank exclusion list
Source: Morningstar Data quoted is past gross of fee performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.
Coho Relative
Value ESG
iShares ESG MSCI USA ETF**
iShares Core S&P 500 ETF
Equity Holdings 27 347 507
Environmental FactorsEnergy Intensity per Sales (mw/1m USD sales)*
79.0 341.5 505.5
Greenhouse Gas Intensity per Sales (mt/1m USD sales)
42.3 76.9 143.1
Water Intensity per Sales (cbm/1m USD sales)*
0.74K 20.10K 17.69K
Social & Governance Factors
Bloomberg ESG Disclosure Score (%) 42% 43% 43%
Companies with 20% or More Women on Boards
89% 80% 80%
Companies with 80% or More Board Independence
93% 84% 82%
Coho Proprietary ESG ScoresA company needs to meet certain minimum scores on ESG score, trend and disclosure in
order to make it into the portfolio. Next to that a company has to meet the required Coho criteria on Stability, Growth, Profitability, Quality and Shareholder Focus
As of 9.30.20 2017 2018 2019 3Q 2020
Coho Scores 1st Quartile 1st Quartile 1st Quartile 1st Quartile
Trend Neutral Positive Positive Positive
Disclosure 1st Quartile 1st Quartile 1st Quartile 1st Quartile
FOR INVESTMENT PROFESSIONAL USE ONLY
Section Four:
Performance & CharacteristicsCoho ESG US Large Cap Equity (Composite: Coho Relative Value ESG Equity)
FOR INVESTMENT PROFESSIONAL USE ONLY 37
Coho ESG versus benchmarksCoho ESG US Large Cap Equity v. Benchmark & Peers
The power of capital preservation and participation over multiple market cycles
Source: eVestment Since Inception, 01-07-2011Data quoted is past gross of fee performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.
Composite : Coho Relative Value ESG Equity
Growth of $100 - Common Period
$350
$325
$300
$275
$250
$225
$200
$175
$150
$125
$100
$75
$50
Coho Partners,
Ltd.: Coho Relative
Value ESG
Russell Index:
Russell 1000 Value
Standard & Poors
Index: S&P 500
Results displayed in USD using Spot Rate (SR).
FOR INVESTMENT PROFESSIONAL USE ONLY 38
Coho ESG US Large Cap EquityHistorical performance
Data quoted is past performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.
Coho claims GIPS compliance. Gross Composite Performance based on the Coho Relative Value ESG Equity Composite
Composite : Coho Relative Value ESG Equity
Performances in the table above is annualized
Data as of 30-09-2020 YtD 1 Year 3 Year 5 YearS ince
Inception US Large Cap ESG EquityCoho Relative Value ESG Equity (Inception – Aug 11) 1.97% 12.45% 10.82% 11.90% 12.00%S&P 500 5.57% 15.15% 12.28% 14.15% 12.96%Russell 1000 Value -11.58% -5.03% 2.63% 7.66% 8.92%
Outperformance S&P 500 -3.60% -2.70% -1.46% -2.24% -0.96%Outperformance Russell 1000 Value +13.55% +17.47% +8.19% +4.25% +3.08%
FOR INVESTMENT PROFESSIONAL USE ONLY 41
Portfolio ReviewESG Attribution Summary – 3Q 2020
Better-than-expected economic recovery along with on-going support from the Fed enabled the U.S. equity markets to post strong returns for the quarter
• Growth stocks continued to outpace their value counterparts at unprecedented levels
• The portfolio returned 6.6% for the quarter, trailing the S&P 500 Index return of 8.9%
• While sector leadership expanded during the quarter, it was paced by cyclical sectors Consumer Discretionary, Materials, Industrials, and Information Technology
• The Information Technology sector continued to be a challenge for the portfolio with both the underweight and stock selection detracting from relative performance
• Additionally, within the Health Care sector the portfolio overweight and stock selection detracted from relative performance
• Stock selection was negative for the quarter as the market continued to be driven by growth and cyclical stocks
• Top five contributors: LOW, SYY, UN, GWW, SWK
• Top five detractors: CVS, STT, KR, MCHP, DGX
Coho Relative Value ESG vs. S&P 500 Index 30/06/2020 – 30/09/2020; Past performance is not indicative of future results.
FOR INVESTMENT PROFESSIONAL USE ONLY 42
Portfolio ReviewESG contributors and detractors – 3Q 2020
Source: FactSet. Calculations are based on daily holdings of the Coho Relative Value ESG portfolio. To obtain additional information on the calculation methodology or to obtain a list showing the contribution of each holding in the portfolio during the measurement period, please contact our Client Relations Team at [email protected]. Past performance is not indicative of future results.Coho Relative Value ESG 30/06/2020 – 30/09/2020 Base Currency: U S Dollar
Largest contributors by holding Largest detractors by holding
Company Name Avg Wt Return Contrib
Lowe's Companies, Inc. 5.21 23.22 1.14
Abbott Laboratories 1.48 22.18 0.48
Unilever NV ADR 3.51 14.15 0.48
Amgen Inc. 4.67 8.48 0.46
W.W. Grainger, Inc. 3.16 14.06 0.43
Coca-Cola Company 3.73 11.39 0.40
Ross Stores, Inc. 4.43 9.48 0.39
The J.M. Smucker Company 3.67 10.03 0.36
Sysco Corporation 2.90 14.78 0.36
Dollar General Corp. 3.40 10.24 0.34
Company Name Avg Wt Return Contrib
CVS Health Corporation 3.85 -9.41 -0.38
State Street Corporation 3.75 -5.82 -0.20
Omnicom Group Inc. 1.21 -1.68 -0.08
Medtronic PLC 0.94 -2.19 -0.07
Microchip Technology Inc. 3.07 -2.08 -0.07
U.S. Bancorp 2.62 -1.48 -0.03
Cash & Equivalents 3.13 0.03 0.00
Aflac Inc. 2.19 1.65 0.03
The Kroger Co. 4.42 0.70 0.04
Quest Diagnostics Inc. 3.89 0.94 0.08
FOR INVESTMENT PROFESSIONAL USE ONLY 45
Purchases From: To: Sales From: To:
1Q20 3M Company 1.40% 2.50% 1Q20 Illinois Tool Works, Inc. 3.00% 2.00%
Ross Stores, Inc. 4.30% 4.80%
Unilever N.V. 3.20% 3.70%
Sysco Corporation 0.00% 1.00%
Lowe's Companies Inc. 3.70% 4..40%
2Q20 Sysco Corporation 1.20% 1.70% 2Q20 Dollar General 5.10% 4.00%
U.S. Bancorp 0.00% 1.00% Abbott Laboratories 3.40% 2.50%
U.S. Bancorp 0.95% 2.00% Dollar General 3.75% 3.25%
Sysco Corporation 1.60% 2.30% Marsh & McLennan Co. 4.50% 4.00%
Ross Stores, Inc. 3.90% 4.40% Lowe's Companies Inc. 5.40% 4.85%
3Q20 U.S. Bancorp 1.85% 2.40% 3Q20 Amgen Inc. 5.70% 5.00%
Johnson & Johnson 4.25% 4.75% UnitedHealth Group Inc. 5.40% 5.00%
Automatic Data Processing 0.00% 3.00% Omnicom Group Inc. 2.99% 0.00%
Sysco Corporation 2.40% 3.40% Illinois Tool Works 2.10% 0.00%
U.S. Bancorp 2.40% 3.00% Lowe's Companies Inc. 5.60% 4.90%
Global Payments Inc. 2.60% 3.10% Abbott Laboratories 2.40% 0.00%
Medtronic PLC 0.00% 2.50%
PURCHASES SALES
Portfolio ReviewYTD 2020 Portfolio Transactions
Source: Advent/Axys
FOR INVESTMENT PROFESSIONAL USE ONLY 46
We engaged with several companies to influence and advocate for commitment to sustainability
▪ Focus on financial and business model specific materiality
▪ Improve metrics for executive compensation and incorporate sustainability metrics
▪ Increased disclosure; Incorporate climate related risks within long term strategic planning
Examples of discussions
Lowe’s is a leading home improvement store chain in the US. The corporate responsibility strategy is centered around product sustainability, strong community relations and operational excellence.
• Encouraged the management team to accelerate progress on energy efficiency, GHG emissions, and sales of eco-friendly products.
• Asked the company to limit non-executive board directors to serve on three total boards, and to incorporate sustainability metrics within the executive incentive plans.
Ross Store operates 1800 off-price department store across the US. ROST has historically received low ratings from 3rd party ESG rating vendors due to limited disclosure.
Encouraged management to publicly disclose ROST’s new five-year sustainability roadmap which addresses energy use, waste reduction, and reporting transparency.
Advocated for more independent board members as the current CEO and two prior CEO’s all serving as directors. ROST leads on gender diversity metrics with four or 36% as women including the current CEO.
Portfolio ReviewRecent engagement highlights
FOR INVESTMENT PROFESSIONAL USE ONLY 47
DEMAND DEFENSIVE ECONOMICALLY SENSITIVEPct. Pct.
Security Price Assets Yield Security Price Assets Yield
CONSUMER STAPLES CONSUMER DISCRETIONARY
Coca-Cola Co. $ 49.37 3.8 3.3 Dollar General Corp. $ 209.62 3.6 0.7
Colgate Palmolive Co. $ 77.15 3.2 2.3 Lowe's Companies Inc. $ 165.86 5.2 1.4
ConAgra Brands, Inc. $ 35.71 3.2 2.4 Ross Stores Inc. $ 93.32 4.5 0.0
Sysco Corp. $ 62.22 3.6 2.9 13.3 0.8
The J. M. Smucker Company $ 115.52 3.8 3.1 FINANCIAL SERVICES
The Kroger Co. $ 33.91 4.3 2.1 Aflac Inc. $ 36.35 2.1 3.1
Unilever N.V. $ 60.40 3.6 2.6 Marsh & McLennan Company $ 114.70 4.0 1.6
25.4 2.7 State Street Corporation $ 59.33 3.4 3.5
U.S. Bancorp $ 35.85 2.9 4.7
12.4 3.1
INFORMATION TECHNOLOGY
HEALTH CARE Automatic Data Processing, Inc. $ 139.49 3.1 2.6
Amgen Inc. $ 254.16 4.7 2.5 Global Payments Inc. $ 177.58 3.2 0.4
CVS Health Corporation $ 58.40 3.5 3.4 Microchip Technology Inc. $ 102.76 3.0 1.4
Johnson & Johnson $ 148.88 4.7 2.7 9.2 1.5
Medtronic PLC $ 103.92 2.5 2.2 INDUSTRIALS
Merck & Co., Inc. $ 82.95 4.1 2.9 3M Company $ 160.18 2.4 3.7
Quest Diagnostics Inc. $ 114.49 3.7 2.0 Stanley Black & Decker Inc. $ 162.20 2.1 1.7
UnitedHealth Group Inc. $ 311.77 4.9 1.6 W. W. Grainger, Inc. $ 356.77 3.2 1.7
28.3 2.5 7.8 2.3
CASH AND EQUIVALENTS 3.5
TOTAL PORTFOLIO 100.0 2.2
Portfolio ReviewPortfolio holdings
As of 30/09/2020; Source: Advent/Axys. Individual holdings may not add up to 100% due to rounding.
DEMAND DEFENSIVE ECONOMICALLY SENSITIVE
FOR INVESTMENT PROFESSIONAL USE ONLY 48
Coho ESG US Large Cap - Attribution Details
Demand Defensive
Economically Sensitive
Outperform
Underperform
Source: FactSet (Holdings Based, Daily). Coho Relative Value ESG vs. S&P 500 Index 30/06/2020 – 30/09/2020Base Currency: U S Dollar. Past performance is not indicative of future results.
Avg Port Wt
Port Return
Port Contrib
AvgBmrk Wt
BmrkReturn
BmrkContrib
AllocEffect
Select Effect
Total Effect
Total Portfolio 100.00 6.61 6.61 100.00 8.93 8.93 0.02 -2.34 -4.37
Consumer Discretionary 13.04 14.92 1.87 11.27 15.06 1.64 0.13 -0.07 0.06
Materials 0.00 0.00 0.00 2.59 13.31 0.32 -0.10 0.00 -0.10
Industrials 8.73 11.61 1.09 8.11 12.47 0.95 0.08 -0.09 -0.01
Information Technology 7.82 2.22 0.18 27.63 11.95 3.27 -0.62 -0.61 -1.23
Consumer Staples 24.75 8.09 1.92 7.00 10.38 0.71 0.22 -0.54 -0.32
Communication Services 1.21 -1.68 -0.08 10.96 8.94 0.98 0.01 -0.33 -0.31
Utilities 0.00 0.00 0.00 3.01 6.14 0.20 0.09 0.00 0.09
Health Care 28.70 5.03 1.54 14.35 5.87 0.89 -0.43 -0.24 -0.67
Financial Services 12.61 0.78 0.09 9.88 4.45 0.43 -0.08 -0.47 -0.55
Real Estate 0.00 0.00 0.00 2.72 1.92 0.06 0.20 0.00 0.20
Cash & Equivalents 3.13 0.03 0.00 0.00 0.00 0.00 -0.25 0.00 -0.25
Energy 0.00 0.00 0.00 2.47 -19.72 -0.52 0.76 0.00 0.76
FOR INVESTMENT PROFESSIONAL USE ONLY 50
Returns and RiskCoho ESG US Large Cap Equity v. Benchmark & Peers
Coho has a much lower standard deviation
Source: eVestment Data quoted is past gross of fee performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.
Composite : Coho Relative Value ESG Equity
Returns 9.25 Years Standard Deviation 9.25 Years
As Of: September 30, 2020
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
Coho Partners,
Ltd.: Coho Relative
Value ESG
Russell Index:
Russell 1000 Value
Standard & Poors
Index: S&P 500
Universe: eVestment US Large Cap ValueEquity
Results displayed in USD using Spot Rate (SR).
FOR INVESTMENT PROFESSIONAL USE ONLY 51
14 15
Standard Deviation
Retu
rns
Common 9.25 Years 07/2011 - 09/2020 As Of: 9/30/2020
18
8 10 12 16 18 20 227 9 11 13 17 19 21
2
4
6
8
10
12
14
16
US Large CapValue
Equity
Coho Partners,
Ltd.: Coho Relative
Value ESG
Russell Index:
Russell 1000 Value
Standard & Poors
Index: S&P 500
US Large CapValue
Equity
Universe: eVestment US Large Cap ValueEquity
Results displayed in USD using Spot Rate (SR).
Scatter Risk/ReturnCoho ESG US Large Cap Equity v. Benchmark & Peers
Source: eVestment Data quoted is past gross of fee performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.
Composite : Coho Relative Value ESG Equity
FOR INVESTMENT PROFESSIONAL USE ONLY 52
2012 2013 2014 2015 2016 2017 2018 2019 YTD
Calendar year returns
Returns
50
45
40
35
30
25
20
15
10
5
0
-5
-10
-15
-20
-25
Coho Partners,
Ltd.: Coho Relative
Value ESG
Russell Index:
Russell 1000 Value
Standard & Poors
Index: S&P 500
Universe: eVestment US Large Cap ValueEquity
Results displayed in USD using Spot Rate (SR).
Calendar Year ReturnsCoho ESG US Large Cap Equity v. Benchmark & Peers
Source: eVestmentData quoted is past gross of fee performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.
Composite : Coho Relative Value ESG Equity
FOR INVESTMENT PROFESSIONAL USE ONLY 53
Coho ESG U.S. Large Cap Equity FundFund information
Fund Launch:
December 2017
Structure:UCITS with ESG
AUM:$214 million * as of 15-10-2020
Exchange:Ireland
Benchmark:
S&P 500 Total Return Index, Russell 1000 Value Index
Liquidity:Daily Liquidity & Valuation
Custodian:
Royal Bank of Canada
Central Admin:
Royal Bank of Canada
Transfer Agent:
Royal Bank of Canada
Auditor:
Deloitte
Composite: Relative Value Strategy Data
Source: eVestment Coho Relative Value as of 30-09-2020 since inceptionData quoted is past gross of fee performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.
Copies of the Prospectus, Supplement and KIIDs are available free of charge from: www.candoris.nl
Management Fee:64 basis points for institutional share class
Other Fees:Annual fixed 15 basis points for institutional investors
Active Share Classes: ISIN Bloomberg
USD Institutional: IE00BF1XKT19 COHIUSDEUR Institutional: IE00BJ2DJ355 COHAIEAEuro Denominated Retail: IE00BF1XKW48 COHREUR USD Retail: IE00BF1XKV31 COHRUSD
Active Share 91.90
Alpha 4,20
Beta 0,77Std Dev 12,42UMC 86,75DMC 73,32Information Ratio 0,51Tracking Error 5,81Sharpe Ratio 0,64
FOR INVESTMENT PROFESSIONAL USE ONLY
Section Six:
Performance & CharacteristicsCoho Relative Value Equity (original strategy with longer track)
FOR INVESTMENT PROFESSIONAL USE ONLY 55
Growth of $100 - Since Inception
$650
$600
$550
$500
$450
$400
$350
$300
$250
$200
$150
$100
$50
$0
Coho Partners,
Ltd.: Coho Relative
Value Equity
Russell Index:
Russell 1000 Value
Standard & Poors
Index: S&P 500
Results displayed in USD using Spot Rate (SR).
20 - year Coho versus benchmarksCoho Relative Value Equity v. Benchmark & Peers
The power of capital preservation and participation over multiple market cycles
Source: eVestment since inceptionData quoted is past gross of fee performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.
Composite : Coho Relative Value
FOR INVESTMENT PROFESSIONAL USE ONLY 56
Coho Relative Value EquityHistorical performance
Data quoted is past performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.
Coho claims GIPS compliance. Gross Composite Performance based on the Coho’s Relative Value Equity Composite
Composite : Coho Relative Value
Performances in the table above is annualized
Data as of 30-09-2020 YtD 1 Year 3 Year 5 Year 10 YearS ince
Inception US Large Cap Equity (in USD)Coho Relative Value Equity (Inception – Oct 00) -0.34% 10.48% 8.91% 11.01% 12.57% 9.40%S&P 500 5.57% 15.15% 12.28% 14.15% 13.74% 6.42%Russell 1000 Value -11.58% -5.03% 2.63% 7.66% 9.95% 6.21%
Outperformance S&P 500 -5.92% -4.67% -3.37% -3.14% -1.17% +2.98%Outperformance Russell 1000 Value +11.23% +15.51% +6.27% +3.35% +2.62% +3.19%
FOR INVESTMENT PROFESSIONAL USE ONLY 57
Returns Since Inception 20 Years Standard Deviation Since Inception 20 Years
4
6
8
10
12
14
16
18
Since Inception 20 Years 10/2000 - 9/2020
20
Coho Partners,
Ltd.: Coho Relative
Value Equity
Russell Index:
Russell 1000 Value
Standard & Poors
Index: S&P 500
Universe: eVestment US Large Cap ValueEquity
Results displayed in USD using Spot Rate (SR).
Current Mature Bull Market PerformanceCoho Relative Value Equity v. Benchmark & Peers
Coho has outperformed while providing much lower standard deviation
Source: eVestment Data quoted is past gross of fee performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.
Composite : Coho Relative Value
FOR INVESTMENT PROFESSIONAL USE ONLY 58
Retu
rns
Since Inception 20 Years 10/2000 - 09/2020 As Of: 9/30/2020
12 13 14 16 17 1812.5 13.5 14.5 15 15.5
Standard Deviation
16.5 17.5
5.5
6
6.5
7
7.5
8
8.5
9
9.5
Coho Partners,
Ltd.: Coho Relative
Value Equity
Russell Index:
Russell 1000 Value
Standard & Poors
Index: S&P 500
US Large CapValue
Equity
Universe: eVestment US Large Cap ValueEquity
Results displayed in USD using Spot Rate (SR).
Scatter Risk/ReturnCoho Relative Value Equity v. Benchmark & Peers
Coho Ranks in the top of all U.S. Large Cap Value managers
Source: eVestment Data quoted is past gross of fee performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.
Composite : Coho Relative Value
FOR INVESTMENT PROFESSIONAL USE ONLY 59
Combined Performance – 2008 & 2009Coho Relative Value Equity v. Benchmark & Peers
Coho outperformed almost all U.S. Large Value Cap peers from 2008 - 20092008-2009 combined returns v. all U.S. Large Cap Value managers and benchmark
Source: eVestment Data quoted is past gross of fee performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.
2008:
Strong bear market.• Coho - 17% • S&P 500 - 37%
2009:
Strong bull market.• Coho + 18.36%• S&P 500 + 26.46%
During this period, Coho delivered annual excess returns of +10% over the S&P 500 index, while outperforming nearly all U.S. Large Cap peers.
Composite : Coho Relative Value
FOR INVESTMENT PROFESSIONAL USE ONLY 60
Calendar Year ReturnsCoho Relative Value Equity v. Benchmark & Peers
Outperformance in Down Markets…
Source: eVestmentData quoted is past gross of fee performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.
Bear Markets
Composite : Coho Relative Value
FOR INVESTMENT PROFESSIONAL USE ONLY 61
Calendar Year ReturnsCoho Relative Value Equity v. Benchmark & Peers
Source: eVestmentData quoted is past gross of fee performance and current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.
Early Bull Markets
Composite : Coho Relative Value
… with underperformance in the early Bull Market that follows, and neutral performance in Mature Bull Markets
FOR INVESTMENT PROFESSIONAL USE ONLY
Section Seven:
About Candoris
FOR INVESTMENT PROFESSIONAL USE ONLY 63
About CandorisAccess to the world’s best investment strategies
Candoris is:
• A Dutch firm with 6 employees in 2020 and ambitions to broaden its marketing
• Honest and direct in communication
• Transparent about the managers we market and the reasons why
• Transparent on price, fund and separate account solutions
Can·dor“kandər-ˌ dôr”
noun: candour; candor
1. The quality of being open and honest in expression; frankness.
Synonyms: frankness, openness, honesty, candidness, truthfulness, sincerity, forthrightness, directness, plain-spokenness, bluntness, straightforwardness, outspokenness
FOR INVESTMENT PROFESSIONAL USE ONLY 64
Current Activities:
• Marketing of investment strategies• Support with combining managers and portfolio optimization• Relationship management and client servicing• Fund setup under Candoris UCITS and Candoris QIAIF• Investor Support with Manager Selection
Target investors are:
• Institutional investors• Private banks • Wholesale distribution companies
Creating access for investors:
• Offering fund solutions • On the ground representation
Entrepreneurial company pairing boutique investment strategies with a compelling story, strong, unique and repeatable investment process and proven track record with investors
About CandorisAccess to the world’s best investment strategies
FOR INVESTMENT PROFESSIONAL USE ONLY 65
Anne de Jong* Coordinator Business DevelopmentCoordinates all marketing activities and reporting
Candoris organizational structure
ARC ***
Business development Austria
Full coverage of the Austrian Market
Privilege Management***
Business development Switzerland
Full coverage of the Swiss Market
Ronald Sminia**
Candoris Linked EmployeeBusiness Development NetherlandsWholesale distributors, private banks,family offices
Roy Scheepe**
Candoris Linked Employee;Business Development Germany
*Candoris employee **Candoris linked employee ***External 3rd party marketing firm Direct marketing to investors
Martijn van Vliet*Director Business DevelopmentDenmark, Sweden, Finland
Rick van de Kamp*Director Strategies and FundsNetherlands Inst, Norway, Ireland
Rogier van de Kamp*Data intelligence/IT
FOR INVESTMENT PROFESSIONAL USE ONLY 66
Candoris matches clients’ needs with unique strategies and solutions
For Investors:• Introduce and market investment strategies and styles that are unique and create alpha
• Facilitate European investment vehicles (funds) or mandates
• Manager selection, compare investment strategies with peers, provide insight on adding a strategy in portfolio context
• The organizations we introduce are boutiques, frequently employee-owned, and specialized
For Asset Managers:• Access to Northern European market at limited expense, Central Continental contact point
• Asset managers can focus on managing their assets while Candoris does the marketing
• Organize/fulfil regulatory requirements
• Organizing roadshows typically twice a year through Northern European market
• Establishing funds both UCITS and QIAIF
• ICAV, benefit from our existing Candoris ICAV structure; new sub-funds can be added
• Benefit from our agreements with all service providers, ie Manco, Custodian, Audit, Directorship
FOR INVESTMENT PROFESSIONAL USE ONLY 67
Selected Strategies & ManagersAccess to the world’s best investment strategies
Investment Manager Investment Strategy Style
DSM Capital Partners –Palm Beach Gardens, FL Global, US and EME Equities Equity Growth
Coho Partners -Philadelphia, PA ESG US Equities Equity Value-Core/Capital Preservation
Eleva Capital -Paris European Equities Equity Small & Mid Cap and Absolute
Return
Pacific Asset Management -Newport Beach, CA US Senior Loans Fixed Income Large Syndicated Liquid
Strategic Income Management (SiM) –Seattle, WA US High Yield Fixed Income All Cap/Opportunistic
VanEck –New York, NY
EMD Unconstrained, Emerging Markets Equities
Fixed Income HC, LC, Corporates Equity All Cap
Orchard Capital Management –Chicago, IL Select Small Cap Select Small Cap Equity Value
FOR INVESTMENT PROFESSIONAL USE ONLY 68
Equity Strategies & PerformanceAccess to the world’s best investment strategies
GIPS Compliant Gross Composite Performance
Source: eVestmentData quoted is past performance gross of fees. Current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.
Data as of 30-09-2020 YtD 1 Year 3 Year 5 Year 10 YearSince
Inception
Emerging Markets Equity Strategy (in USD)
VanEck Emerging Markets Equity Strategy (Inception - Jan 06) 1,08% 10,64% 4,04% 10,25% 5,80% 7,93%
MSCI EM IMI -1,29% 10,14% 2,03% 8,43% 2,34% 5,43%DSM Emerging Markets growth (Inception Jul 2017) 14,02% 23,14% 10,79%
MSCI EM -1,16% 10,54% 2,42% 8,97% 2,50% 4,65%
Global Equity (in USD)
DSM Global Growth (Inception - Oct 10) 25,88% 39,41% 16,38% 19,12% 15,51%MSCI ACWI ND 1,37% 10,44% 7,12% 10,30% 8,55% 8,55%MSCI ACWI Growth ND 18,13% 30,22% 15,36% 15,43% 11,70% 11,70%
European Equities (in EUR)
Eleva Small & Mid Cap (Inception - Dec18) *performance since inception not annualized
10,77% 20,67% 51,39%
STOXX Europe Small 200 Index (net return) -8,39% -0,10% 17,96%
US Large Cap Equity (In USD)
Coho Relative Value Equity (Inception - Oct 00) -0,34% 10,48% 8,91% 11,01% 12,57% 9,40%S&P 500 5,57% 15,15% 12,28% 14,15% 13,74% 6,42%Russell 1000 Value -11,58% -5,03% 2,63% 7,66% 9,95% 6,21%
US Equity Growth (in USD)
DSM US Equity Growth (Inception - Jan 02) 22,79% 37,77% 19,86% 19,44% 17,22% 11,49%Russell 1000 growth 24,33% 37,53% 21,67% 20,10% 17,25% 9,55%S&P 500 5,57% 15,15% 12,28% 14,15% 13,74% 8,05%
US Small Cap Value Equity (in USD)
Orchard US Small Cap Value (inception - Jul 01) -18,78% -13,19% -6,10% 5,81% 9,77% 9,22%
Russell 2000 Value -21,54% -14,88% -5,13% 4,11% 7,09% 6,60%
US Small Cap Growth Equity (in USD)
Osterweis US Small Cap Growth (Inception - Jul 06) 42,08% 41,36% 26,72% 19,60% 21,10% 16,33%
Russell 2000 Growth 6,15% 17,28% 10,90% 10,45% 14,08% 9,04%
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Fixed Income Strategies & PerformanceAccess to the world’s best investment strategies
GIPS Compliant Gross Composite Performance
Source: eVestmentData quoted is past performance gross of fees. Current performance may be lower or higher. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate.
Data as of 30-09-2020 YtD 1 Year 3 Year 5 Year 10 YearSince
Inception
EMD Unconstrained (in USD)
VanEck EMD Unconstrained (Inception - Aug 12) 1,84% 6,51% 3,11% 6,19% 3,11%
50% JPM EMBI & 50% JPM GBI-EM -3,41% -0,02% 1,89% 5,53% 3,02% 2,26%
US High Yield (in USD)
SiM US High Yield (Inception - Feb 11) -0,35% 2,05% 4,60% 6,77% 7,12%
BofA ML US High Yield Master II -0,30% 2,30% 3,83% 6,61% 6,28% 4,06%
Corporate (Bank) Loan Strategy (in USD)
PAM Corporate (Bank) Loan Strategy (Inception - Jan 07) -0,04% 1,52% 3,75% 4,71% 5,12% 5,31%
CS Leveraged Loan -0,83% 0,84% 3,16% 4,03% 4,44% 4,06%
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Section Eight:
Appendix
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ESG metric definitionsPortfolio snapshot
Carbon Impact (tonnes) In order of availability: Bloomberg collected GHG (“Greenhouse Gas”) emission data, CO2 (Carbon Dioxide) emission data, CDP (“Carbon Disclosure Project”) collected total GHG emissions; If no data is reported, then use Bloomberg estimated or CDP estimated emission data.
Carbon Efficiency (tonnes/1m USD invested) =σ𝑀𝑒𝑚𝑏𝑒𝑟 𝑖 𝐶𝑎𝑟𝑏𝑜𝑛 𝐼𝑚𝑝𝑎𝑐𝑡𝑖
σ𝑀𝑒𝑚𝑏𝑒𝑟 𝑖𝑀𝑎𝑟𝑘𝑒𝑡 𝑉𝑎𝑙𝑢𝑒𝑖
Carbon Efficiency (tonnes/1m USD sales) = σ𝑀𝑒𝑚𝑏𝑒𝑟 𝑖𝑊𝑒𝑖𝑔ℎ𝑡𝑒𝑑 𝐶𝑎𝑟𝑏𝑜𝑛 𝐼𝑛𝑡𝑒𝑛𝑠𝑖𝑡𝑦𝑖
Water Intensity per Sales Calculated as cubic meters of water consumed per million of sales revenue in the company's reporting currency. Ratio is calculated based on items disclosed in company filings. Calculated as: Total Water Use * 1000000 / Sales.
Greenhouse Gas Intensity per Sales Calculated as metric tonnes of greenhouse gases emitted per million of sales revenue in company’s reporting currency. Ratio is calculated based on items disclosed in company filings. Calculated as: Total GHG Emissions / Sales. Total GHG is defined as Scope 1 + Scope 2 emissions. Total CO2 emissions are a subset of GHG emissions and for most companies CO2 will compose >90% of Total GHGs.
ESG Disclosure ScoreProprietary Bloomberg score based on the extent of a company's Environmental, Social, and Governance (ESG) disclosure. Companies that are not covered by an ESG group will have no score and will show N/A. Companies that do not disclose anything will also show N/A. The score ranges from 0.1 for companies that disclose a minimum amount of ESG data to 100 for those that disclose every data point collected by Bloomberg. Each data point is weighted in terms of importance, with data such as Greenhouse Gas Emissions carrying greater weight than other disclosures. The score is also tailored to different industry sectors. In this way, each company is only evaluated in terms of the data that is relevant to its industry sector. This score measures the amount of ESG data a company reports publicly, and does not measure the company's performance on any data point.
Sustainalytics Percentile RankOverall percentile rank assigned to the company based on its environmental, social and governance (ESG) total score relative to its industry peers. For the top 1% the percentile is 99%; for the bottom 1% the percentile is 1%. This is Sustainalytics' most comprehensive percentile rank. Aggregate ESG performance encompasses a company's level of preparedness, disclosure, and controversy involvement across all three ESG themes.
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Disclosures
Use of the Russell 1000® Value IndexSource: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2020.
The Coho Relative Value Equity strategy has been developed solely by Coho Partners, Ltd. The strategy is not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings. FTSE Russell is a trading name of certain of the LSE Group companies.
All rights in the Russell 1000® Value Index (the “Index”) vest in the relevant LSE Group company which owns the Index. Russell® is a trademark of the relevant LSE Group company and is/are used by any other LSE Group company under license.
The Index is calculated by or on behalf of FTSE International Limited or its affiliate, agent or partner. The LSE Group does not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Index or (b) investment in or operation of the Coho Relative Value Equity strategy. The LSE Group makes no claim, prediction, warranty or representation either as to the results to be obtained from the Coho Relative Value Equity strategy or the suitability of the Index for the purpose to which it is being put by Coho Partner, Ltd.
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Section 9
Disclaimer
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This information is proprietary and cannot be reproduced or distribute. Certain information may be received from sources Candoris B.V. considers reliable; Candoris B.V. does not represent that such information is accurate or complete. Certain statements contained herein may constitute “projections,” “forecasts” and other “forward-looking statements” which do not reflect actual results and are based primarily upon applying retroactively a hypothetical set of assumptions to certain historical financial data. Actual results, performance or events may differ materially from those in such statements. Any opinions, projections, forecasts and forward-looking statements presented herein are valid only as of the date of this document and are subject to change. Nothing contained herein should be construed as (i) an offer to buy any security or (ii) a recommendation as to the advisability of investing in, purchasing or selling any security. Candoris B.V. assumes no obligation to update any forward-looking information.
Past performance is no guarantee of future results.
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Any offer or sale must therefore be in strict compliance with Swiss law, and in particular with the provisions of the Collective Investment Schemes Act and its implementing ordinances, and FINMA circular 2013/9 on distribution of collective investment schemes. No person or entity is authorized to offer or sell the Shares or distribute any Fund Documentation, including the Prospectus, the Articles of Incorporation and annual reports issued by the Fund from time to time or promotional material pertaining to the Fund in or from Switzerland other than to "Qualified Investors", as defined in Article 10 of the CISA and Articles 6 and 6a of the CISO and any circulars issued by FINMA.
The Fund has appointed as Swiss Representative Oligo Swiss Fund Services SA, Av. Villamont 17, 1005 Lausanne, Switzerland, Tel: +41 21 311 17 77, email: [email protected]. The Fund’s paying agent is Helvetische Bank AG. Any Fund Documentation may be obtained free of charge from the Swiss Representative in Lausanne. In respect of the Shares distributed in or from Switzerland, the place of performance and jurisdiction is at the registered office of the Swiss Representative.